India: UltraTech has received the green signal from the Competition Commission of India for its US$605m agreement with Jaypee Cement Corporation to purchase its Gujarat-based businesses.
UltraTech plans to acquire Jaypee's facilities, which include an integrated cement manufacturing plant at Sewagram, a captive power plant and mining leases and limestone reserves.
CCI has announced that the agreement will not affect competition in the market as companies like Lafarge and ABG Cement are initiating plants in Rajasthan and Gujarat respectively. CCI also stated that the entry of new companies counterbalances the competition market, which is affected by the merger of two similar companies, especially if the newly entered party is of ample size.
